BOSTON--(BUSINESS WIRE)-- Safety Insurance Group, Inc. (NASDAQ:SAFT) today reported second quarter 2017 results. Net income for the quarter ended June 30, 2017 was $21.1 million, or $1.39 per diluted share, compared to net income of $21.4 million, or $1.41 per diluted share, for the comparable 2016 period. Net income for the six months ended June 30, 2017 was $33.1 million, or $2.18 per diluted share, compared to net income of $34.0 million, or $2.25 per diluted share, for the comparable 2016 period. Safety’s book value per share increased to $45.59 at June 30, 2017 from $44.27 at December 31, 2016. Safety paid $0.70 per share in dividends to investors during the quarters ended June 30, 2017 and 2016, respectively. Safety paid $2.80 per share in dividends to investors during the year ended December 31, 2016.

Today, our Board of Directors approved and declared an increase in the quarterly cash dividend from $0.70 to $0.80 per share on the issued and outstanding common stock, payable on September 15, 2017 to shareholders of record at the close of business on September 1, 2017.

Direct written premiums for the quarter ended June 30, 2017 increased by $5.6 million, or 2.6%, to $227.0 million from $221.4 million for the comparable 2016 period. Direct written premiums for the six months ended June 30, 2017 increased by $9.4 million, or 2.3%, to $426.7 million from $417.3 million for the comparable 2016 period. The 2017 increase occurred in our private passenger automobile, commercial passenger automobile and homeowner lines of business, which experienced increases in average written premium per exposure of 4.1%, 3.4% and 3.9%, respectively.

Net written premiums for the quarter ended June 30, 2017 increased by $5.9 million, or 2.8%, to $213.8 million from $207.9 million for the comparable 2016 period. Net written premiums for the six months ended June 30, 2017 increased by $11.1 million, or 2.8%, to $404.7 million from $393.6 million for the comparable 2016 period. Net earned premiums for the quarter ended June 30, 2017 increased by $5.4 million, or 2.9%, to $192.8 million from $187.4 million for the comparable 2016 period. Net earned premiums for the six months ended June 30, 2017 increased by $9.5 million, or 2.5%, to $382.5 million from $373.0 million for the comparable 2016 period. Net written and net earned premiums increased primarily due to increases in our homeowners and automobile business as discussed above.

For the quarter ended June 30, 2017, loss and loss adjustment expenses incurred increased by $1.9 million, or 1.7%, to $117.0 million from $115.1 million for the comparable 2016 period. For the six months ended June 30, 2017, loss and loss adjustment expenses incurred increased by $4.4 million, or 1.8%, to $245.5 million from $241.1 million for the comparable 2016 period. Loss, expense, and combined ratios calculated under U.S. generally accepted accounting principles for the quarter ended June 30, 2017 were 60.7%, 31.6%, and 92.3%, respectively, compared to 61.4%, 30.7%, and 92.1%, respectively, for the comparable 2016 period. Loss, expense, and combined ratios calculated under U.S. generally accepted accounting principles for the six months ended June 30, 2017 were 64.2%, 31.5%, and 95.7%, respectively, compared to 64.6%, 30.4%, and 95.0%, respectively, for the comparable 2016 period. Total prior year favorable development included in the pre-tax results for the quarter ended June 30, 2017 was $10.0 million compared to $11.8 million for the comparable 2016 period. Total prior year favorable development included in the pre-tax results for the six months ended June 30, 2017 was $20.4 million compared to $21.9 million for the comparable 2016 period.

Net investment income for the quarter ended June 30, 2017 increased by $0.1 million, or 0.8%, to $9.7 million from $9.6 million for the comparable 2016 period. Net investment income for the six months ended June 30, 2017 decreased by $0.5 million, or 2.4%, to $18.8 million from $19.3 million for the comparable 2016 period. The decrease is a result of fixed maturity amortization related to prepayment activities. Net effective annualized yield on the investment portfolio for the quarter ended June 30, 2017 was 3.1% compared to 3.2% for the comparable 2016 period. Net effective annualized yield on the investment portfolio for the six months ended June 30, 2017 was 3.0% compared to 3.2% for the comparable 2016 period. Our duration was 4.0 years at June 30, 2017 and 4.3 years at December 31, 2016.

About Safety:Safety Insurance Group, Inc., based in Boston, MA, is the parent of Safety Insurance Company, Safety Indemnity Insurance Company, and Safety Property and Casualty Insurance Company. Operating exclusively in Massachusetts, New Hampshire, and Maine, Safety is a leading writer of property and casualty insurance products, including private passenger automobile, commercial automobile, homeowners, dwelling fire, umbrella and business owner policies.

Additional Information: Press releases, announcements, U. S. Securities and Exchange Commission (“SEC”) Filings and investor information are available under “About Safety,” “Investor Information” on our Company website located at www.SafetyInsurance.com. Safety filed its December 31, 2016 Form 10-K with the SEC on February 24, 2017 and urges shareholders to refer to this document for more complete information concerning Safety’s financial results.

This press release contains, and Safety may from time to time make, written or oral "forward-looking statements" within the meaning of the U.S. federal securities laws.Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.They often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “aim,” “projects,” or words of similar meaning and expressions that indicate future events and trends, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may”.All statements that address expectations or projections about the future, including statements about the Company’s strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements.

Forward-looking statements are not guarantees of future performance.By their nature, forward-looking statements are subject to risks and uncertainties.There are a number of factors, many of which are beyond our control, that could cause actual future conditions, events, results or trends to differ significantly and/or materially from historical results or those projected in the forward-looking statements.These factors include but are not limited to the competitive nature of our industry and the possible adverse effects of such competition.Although a number of national insurers that are much larger than we are do not currently compete in a material way in the Massachusetts private passenger automobile market, if one or more of these companies decided to aggressively enter the market it could have a material adverse effect on us.Other significant factors include conditions for business operations and restrictive regulations in Massachusetts, the possibility of losses due to claims resulting from severe weather, the possibility that the Commissioner of Insurance may approve future Rule changes that change the operation of the residual market, our possible need for and availability of additional financing, and our dependence on strategic relationships, among others, and other risks and factors identified from time to time in our reports filed with the SEC, such as those set forth under the caption “Risk Factors” in our Form 10-K for the year ended December 31, 2016 filed with the SEC on February 24, 2017.

We are not under any obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise.You should carefully consider the possibility that actual results may differ materially from our forward-looking statements.